Congress passes semiconductor subsidies. Will Boise’s Micron expand in Idaho?

The semiconductor-subsidy bill Micron Technology urged Congress to pass is headed to President Joe Biden, who pushed for it and is expected to sign it.

The $280 billion package passed by the House, 243-187, on Thursday will boost the nation’s memory-making capacity and invest in scientific research. The U.S. now depends on manufacturing in Taiwan for its most sophisticated chips.

What does this mean for Micron, the Boise-based computer-chip company?

The company praised Congress and the Biden administration for the legislation and said it now intends to expand its memory-manufacturing capacity in the U.S.

”The competitive incentives passed yesterday will allow Micron, the only U.S.-based manufacturer of memory, to grow domestic production of memory significantly in the years ahead,” the company said Friday in a news release. “We look forward to sharing more details regarding our plans in the coming weeks.”

Over the next decade, Micron has pledged to invest $150 billion in manufacturing and research and development. Its plans include a new fabrication plant to build DRAM, dynamic random-access memory, the company’s leading product.

In a guest opinion published July 16 by the Idaho Statesman, Micron CEO Sanjay Mehrotra wrote that the subsidies in the semiconductor bill will help memory manufacturers like Micron expand in the U.S., instead of abroad, where costs are far lower. He said Micron must overcome a 40% cost gap to build its plant in the U.S.

Just 2% of global memory supply is produced in the U.S. – all of which is manufactured by Micron, according to the company.

“Companies like Micron must make decisions now or risk falling behind,” Mehrotra said.

Micron still hasn’t said whether that plant will be built in Idaho.

Notably, the entire Idaho delegation – Sens. Mike Crapo and Jim Risch, and Reps. Russ Fulcher and Mike Simpson – voted against the legislation.

Simpson said in a statement Thursday that while he supports funding semiconductor production within the country’s borders, the bill includes “wish-list items” that have nothing to do with countering the influence international rivals have over critical resources.

“At a time when inflation is at record levels and Americans are already suffering under the crushing weight of rising prices, it is irresponsible to approve even more reckless spending that will almost certainly send our economy into recession,” Simpson said.

All four Idaho legislators are Republican. The Idaho Democratic Party criticized them for not supporting the bill.

“Idaho’s computer chip manufacturing industry provides good jobs and is critical to our state’s economy,” state party Chair Lauren Necochea said in a news release. “Without domestic computer chip production, our nation is vulnerable from both a security and a supply-chain perspective.”

Micron Technology searches for site for $40B factory. Is Boise among the contenders?

Biden’s commerce secretary says Congress must pass subsidy fast to help Micron, nation

‘A great deal at stake for Idaho:’ Why Biden’s commerce secretary is pointing out Micron

With sales tax exemption from the Idaho Legislature, will Micron expand its Boise campus?